These foreign entities with their foreign bankers later invoked these bank guarantees and recovered the money pledged as guarantee when the Indian companies failed to deliver. Both the Indian companies and the foreign entities were allegedly controlled by Choudhary and his associates, the ED has said. A chargesheet has already been filed by the CBI in this case for causing "to the tune of Rs 966 crore. "Punjab National Bank, Syndicate Bank, Canara Bank, United Bank of India and Union Bank of India are those affected, according to the CBI chargesheet. But ED claims Choudhary had cheated at least 25 banks in the same way, causing a loss of Rs 2,650 crore.

Source: Times of India May 04, 2017 01:21 UTC